The World Bank and Global Environment Facility to Help Improve the Quality of its Coastal Waters

The World Bank’s Board of Executive Directors today approved a EUR60 million loan and a US6.4 million Global Environment Facility Grant to the Republic of Croatia to help combat pollution along the country’s coast.

 

This second phase of the Coastal Cities Pollution Control Program will build on the activities of the first phase, which aimed at safeguarding the quality of coastal waters and the environment, both of strategic importance to Croatia’s tourism industry, the livelihoods of local communities and marine life.  Phase two will seek to improve the efficiency and sustainability of wastewater services in 30 coastal cities where only 49 percent of the population has adequate wastewater collection systems and only 16 percent of the wastewater is treated.  The overall program will help Croatia meet European Union environmental standards needed for successful EU accession. 

 

The  project will also help reduce the level of nutrients and other pollutants entering Croatia’s coastal waters from households and industries, and will test innovative wastewater treatment solutions in selected municipalities.

 

“Croatia is renowned worldwide for its beautiful coasts with coastal tourism generating considerable income for the country and many people making their living directly or indirectly from tourism related activities.” said Orsalia Kalantzopoulos, World Bank Country Director for Croatia.  “It is therefore of vital importance to safeguard this important resource by reducing the amount of pollutants that enter seawater and to ensure that future generations can also benefit from Croatia’s rich natural heritage.”

 

The first component of the project will undertake investments to construct or upgrade wastewater collection, treatment and disposal systems in 30 municipalities. Four municipalities regarded as environmental “hot spots” will receive grant funds for enhanced nutrient reduction wastewater treatment facilities.   The second component will focus on the implementation of the Water Management Strategy and assisting Croatia’s water sector to meet EU standards.  The third component will help measure the impact of the program’s activities on the quality of seawater.

 

The overall cost of the project is Euro 120 million, which is supported by an IBRD Loan for Euro 60 million at six month LIBOR plus fixed spread, with a maturity of 15 years, including a 5-year grace period.  The Global Environment Facility Grant of US$ 6.4 million is co-financing the project, which is under the World Bank GEF Investment Fund for the Mediterranean Sea.

Since joining the World Bank in 1993, Croatia has received support from the global development institution in the form of financial and technical assistance, policy advice and analytical services. To date, the Bank has offered support for 39 operations with a total value of US$2.3 billion, and it has approved 51 grants with a total value of US$63 million.

About the GEF

 

           The GEF unites 178 countries in partnership with international institutions, non-governmental organizations (NGOs), and the private sector to address global environmental issues while supporting national sustainable development initiatives. Today the GEF is the largest funder of projects to improve the global environment. An independent financial organization, the GEF provides grants for projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. Since 1991, GEF has achieved a strong track record with developing countries and countries with economies in transition, providing $8.3 billion in grants and leveraging $33.7 billion in co-financing for over 2,200 projects in over 165 countries.

 

 Through its Small Grants Program (SGP), GEF has also made more than 7,000 small grants, up to $50,000 each, directly to nongovernmental organizations

 and community organizations. 

 

The World Bank Group is one of GEF’s implementing agencies and supports countries in preparing GEF co-financed projects and supervises their implementation.  It plays the primary role in ensuring the development and management of investment projects. The Bank draws upon its investment experience in eligible countries to promote investment opportunities and to mobilize private sector, bilateral, multilateral, and other government and non-government sector resources that are consistent with GEF objectives and national sustainable development strategies.  Since 1991, the World Bank Group has committed $1.52 billion in GEF resources and $2.25 billion in Bank group co-financing for GEF projects in 80 countries. In addition to GEF and Bank resources, it has mobilized additional co-financing of $5.48 billion from other donors.

Restaurant Review New York Times: Mondo Konoba in Croatia

By KABIR CHIBBER

Published: February 1, 2009 on Ney York Times online

Mondo Konoba may be the best little restaurant that you may never reach. It is what eating in the Old World should feel like. Just be warned that you’ll have to work for it.

Istria, the part of Croatia that’s closest to Italy, was under its neighbor’s rule until the end of World War II and was previously occupied by the mighty Venetians. It’s beautiful, cheap and largely free of the hordes of tourists that spoil so many postcard-worthy views in Italy. Think of it as Tuscany 50 years ago.

Mondo Konoba sits on a slope just outside the large gate to the beautiful medieval village of Motovun, which is on a hilltop deep in the Croatian countryside almost an hour from the nearest train station. Visitors can drive up the narrow winding road almost to the top, though they must leave their cars and make their way along the final stretch of narrow cobbled streets with misshapen and brightly colored houses on foot. Otherwise, it’s a stunning, but tiring, half-hour trek to Motovun.

Where does a weary traveler rest? In a tavern, which is the translation of konoba. The vibe is as relaxed as the word suggests, with an airy dining room and a few simple wooden tables outside. The menu relies heavily on local ingredients particular to the surrounding area.

Among the highlights are beef carpaccio with shavings of black truffle, a rich and creamy polenta with truffles and a delicious dish of tagliatelle — in a truffle sauce, of course. Truffles are abundant there, and are dug up by hunters and their dogs (or more traditionally with pigs) fresh in the mornings.

Nikola, the friendly and multilingual waiter, is great with helping to choose a glass of one of the crisp local white wines to pair with the food. Main courses range from 65 to 140 kuna (about $11 to $25 at 5.8 kuna to the dollar), a tremendous bargain when compared with the expensive dishes on tourist menus in Italy.

Before the sun sets, there should be enough time to enter the gate to the village, built in the 1400s, and soak in the breathtaking views. No surprise, then, that many Italians say the best place for a dream holiday is Croatia.

New law for foreigners

Citizens of the European Union will be interested to know that the new real estate law in Croatia makes them equal to domestic population when it comes to buying real estate. The law will be in effect from February 1st 2009, which is less than two weeks from today.
This means that European buyers will from now on be able to buy real estate in Croatia without any of the previous limitations and special rules, which will now only aply to residents from other countries that are not yet members of the European Union. Up until now, foreigners were only able to buy real estate by founding companies in Croatia, which made the whole procedure much more complicated and time consuming. Well, from now on all Europeans can start investing in real estate in Croatia freely!
This may be the solution for the current situation at the market, which started to slow down to a point of standstill. In these times of crisis, the new law may prove to be just what it takes to light up the spark on the Croatian real estate market!

Predictions for the credit crisis

Wednesday 7 January 2009

Over €50 bln. of equity capital is targeting European commercial real estate in 2009, according to Jones Lang LaSalle’s new European Capital Markets outlook paper Time for Decisions.

Some markets like London, Paris and Madrid  are well advanced in their market corrections according to Jones Lang LaSalle. Whilst some estimates of “war chests of equity” waiting to target distressed assets are overblown, institutions and third party money managers, opportunity funds, international wealth entities and some German open- and closed- ended funds will be looking for appropriate opportunities to enter the market. Tony Horrell, Head of European Capital Markets at Jones Lang LaSalle said: “We have no doubt that operating conditions in 2009 will be the most challenging that many in the market have ever encountered, but for those able to look to the medium term and with access to capital we think 2009 will be the year when the market begins to clear and some opportunities will be too good to miss. For the smart investor this year will be about positioning themselves to take advantage of these buy-side opportunities as they emerge.” Real estate debt finance is set to remain limited this year, with low loan-to-value ratios and high margins. Horrell continued: “We fully expect it will take three to five years for banks to repair their balance sheets and they will only begin to address this problem in 2009. They will most likely be ultra-cautious and conservative in their handling of their outstanding real estate exposure and highly selective in their lending criteria.” Values across Europe overall have already fallen by up to 40% in some markets from their peak in summer 2007 and more value erosion is a certainty in 2009, and for some it will be better to sell now where markets have further to fall. At the fourth quarter 2008 some markets in Europe had recorded yield decompression in excess of 200 basis points since the peak for prime offices and shopping centres, whilst others have yet to experience more than a 50 basis points correction.  Nigel Roberts, Chairman of European Research at Jones Lang LaSalle commented: “Some markets like London, Paris and Madrid are well advanced in their market corrections and will no doubt attract increased investor interest if the fundamentals are judged to support the new price levels. Fair value estimates, likely yield ceiling indicators and asset specific pricing will become crucial decision tools in 2009 for investors timing their market entry, and judging price and value trade-offs. We also expect market conditions will contribute to the trading of increasing numbers of assets that are seldom brought to the market and these will most likely reflect premium prices or change hands irrespective of whether the market has hit a recognised price floor.” Nigel Roberts concluded: “The rental markets and the strength of tenant demand will be the critical components of pricing and value assessments in 2009. The supply side of most markets is not expected to be a problem because the pipelines are generally not swollen with schemes which are committed or under construction. Attention will focus on the resilience of demand in the face of some of the weakest economic fundamentals for decades. In some markets however, weak demand will lead to subletting and grey space will result in ever higher vacancy rates.”  Source: JLL

Croatia Real Estate newsletter March 09

MONTENEGRO TO APPLY FOR EU ACCESSION BEFORE 2009

Montenegro is to apply for full candidacy of the EU before the end of this year, according to the country’s prime minister Milo Djukanovic.Speaking at a press conference in Bosnia last week, Djukanovic said: "We are trying to agree on a compromise in talks with France and achieve what Montenegro has planned - to apply for a candidate status by the end of the year. We have got full satisfaction after declaring independence: we have strengthened stability and come closer to our European goals."Mr Djukanovic said that he believes EU status will reflect the increased social, political and economic stability achieved in Montenegro since 2006, when the country won independence."One of the biggest strengths put forward when I was recommending Montenegro as an investment destination in 2007, was its path toward recent accession into the EU,” said Liam Bailey, chief market analyst for overseas property portal Property Abroad. “This has had a massive effect on other property markets in the region: Bulgaria and Estonia are prime examples; their property markets exploded after EU accession with price rises of up to 30% being regularly recorded. It was anticipated the Montenegro would achieve full membership in 2009, if it can do so before it all the better."Ivan Dasic, director of Eastern Europe and Russia for estate agency Montenegro Prospects, agreed and said that just the intention of joining the Union will help reassure cautious investors.“This will definitely have a positive effect on the market here, particularly for out Russian clients,” he said. “This would assure them that Montenegro is not just some small Balkan country and is part of a stable EU. This has been holding many back. In the financial crisis at present, people are waiting for the bottom to reach the market before jumping in. This will help prices take off again and give us the edge, especially with potential Scandinavian, German and French clients. They like the security of the EU.”

Le Méridien Lav hotel receives three World Travel Awards

Le Méridien Lav hotel in Podstrana near Split won three prestigious awards at the 2008 World Travel Awards for Europe event held on 15 October in Slovakia.The hotel was named Europe's Leading Conference Hotel, Croatia's Leading Hotel and Croatia's Leading Spa Resort.Located in Podstrana, eight kilometres south of Split, Le Méridien Lav has 381 rooms and suites, eight restaurants and bars, a casino and a nightclub. With an area of 2,900 square meters, the hotel’s eight conference and banquet facilities are the largest on the Adriatic coast. The hotel's Marina Promenade features shops, restaurants, bars, and cafés, and the Yacht Marina can accommodate 60 yachts. The Diocletian Spa and Wellness Centre includes an indoor pool, saunas, steam baths and whirlpools.The hotel won awards in all categories in which it was nominated. Hotel representatives said that the Croatia's Leading Hotel and Croatia's Leading Spa Resort awards were especially important since most of their guests were Croats.Ivica Kurtovic, who has an interest in the hotel, said: "When I decided to buy and renew the hotel, I said many times that it would be one of the best hotels in Europe. Many people doubted that, but we have received confirmation that it is."Graham E. Cooke, the founder and President of World Travel Awards, said that the awards, often described as the "Oscars" of the travel industry, had acquired a global reputation in the area of helping encourage quality offers to customers and excellent business performance.The winners of the 15th World Travel Awards were chosen by travel agents around the world.